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Labour supply/demand dynamics of Canada’s ICT sector and beyond David Ticoll [email protected] @dticoll

Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

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Page 1: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Labour supply/demand dynamics of Canada’s ICT sector and beyond

David [email protected]

@dticoll

Page 2: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

• Quality technical grads, but shortages• Insufficient business skills & seasoning

Page 3: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

ICT skills context (Statscan)

• 811,000 ICT professionals• 56% outside ICT sector• 24% women• 36% immigrants• 48% in Ontario, 25% in Quebec• Unemployment typically 2.5-3.5%

Page 4: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Nordicity 2012-13 for Industry Canada

• Focus: R&D intensive part of ICT sector– Mainly (a) manufacturers & (b) associations, incubators, etc.

• Mandate:– Assess unmet demand and recruiting challenges for talent and

skills– Recommend approaches for addressing these challenges

• 6 technical occupations– Electrical/electronics, computer & software engineers (3)– Computer systems analysts– Database administrators & developers– Computer programmers & media developers

• Lit review, interviews (30+), online survey (110 completions), roundtable

Page 5: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Challenges Potential Causes

• Specialized skills needs change frequently. Emerging technologies create new needs across broad range of ICT products and services.

• Absence of frequent, granular labour market information.

• Limited NOC codes.

• PSI ICT programs focus on technical education not ‘soft’ skills

• Many ICT PSI students are first generation immigrants with limited English/French language skills, sometimes cultural differences

• Communication, project management, business and entrepreneurial, and ‘real world’ skill gaps are universal

Nordicity findings: demand pressures

Page 6: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Challenges Potential Causes

• Recruiting specialized, hybrid and/or line-of-business specific technical skillsets.

• Recruiting combined biz/tech skill sets for marketing, sales and management

• Lack of stakeholder awareness (students, career influencers, PSIs) about changing skillset profiles

• Canadian LOB clusters lack critical mass

• Insufficient venture capital equity with knowledge how to finance global roll-out

• Mid-stage firms often sell to foreign purchasers before developing these skills

• Recruiting experienced sales, marketing, entrepreneurial, product development mgt with global capabilities

• Recruiting senior technical professionals

Nordicity findings: skills gaps

Page 7: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

• Quality technical grads, but shortages• Insufficient business skills & seasoning• ICT manufacturing down, telecom &

wholesaling flat• Up: software, systems design/data processing

Page 8: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Where does innovation come from -and where does it go?R&D vs GDP 2013 (Industry Canada)

R&D GDP

Software/svcs 2.0B$ 27.4B$

Manufacturing 2.0 4.0

Comms Svcs 0.5 32.5

Wholesalers 0.5 5.6

Page 9: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers
Page 10: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers
Page 11: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers
Page 12: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

ICTC’s 2015 forecast reflects a business & software oriented labour market

• Net hiring requirements, all sectors, to 2019: 183,000• Key gaps:

– Leaders:• IS analysts & consultants• Computer & IS managers

– Innovators• Software engineers

– Builders• Programmers & IM developers• Graphic designers & illustrators• DB analysts

– Support professionals• Computer/network operators & web technicians• Data administrators

Page 13: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Net…• Canada’s platform champions have fallen• ICT manufacturing in decline• Software activity in 4 areas:

– Standalone applications (Desire2Learn, Shopify)– Platform apps (Ubisoft, Wave, G&M)– Business application development/customization

both in-house and client-oriented (CGI, IBM, Accenture)

– R&D centers of excellence (IBM, Microsoft, Google)

Page 14: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

• Quality technical grads, but shortages• Insufficient business skills & seasoning• ICT manufacturing down, telecom &

wholesaling flat• Up: software, systems design/data processing• Context: Silicon Valley platform conglomerates

Page 15: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Platform-based digital conglomerates• GAFA, Alibaba and aspirants• Network effects, nonrivalry, incomplete excludability, digital speed monopoly

• Near zero transaction costs, media socialization free/precariatlabour

• Silicon Valley advantages: intellectual & $$$ capital, people networks, fast innovation, culture, ideology

• Assets: big data, advanced algorithms, lock-in/addictiveness• Constrains growth of Canadian ICT sector and the seasoning of its

talent• In practice, Canada’s ICT sector is now mainly about:

– Content provision to the platform economy– Niche applications– Applications & customization for domestic and international business

clients– R&D by US firms

Page 16: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

• Quality technical grads, but shortages• Insufficient business skills & seasoning• ICT manufacturing down, telecom &

wholesaling flat• Up: software, systems design/data processing• Context: Silicon Valley platform conglomerates• New platforms aim to monopolize the physical

Page 17: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Future case: Autonomous Vehicles• Multiple scenarios• Full adoption case (2025-35?)

– Mobility as a service, integrated with mass transit– Automation of commercial transportation & deliveries

• Benefits– 90% reduction in vehicles on the roads– 90%+ reduction in accidents– Much less street & lot parking– Lower energy costs & environmental impacts– Time savings– Lower costs, better management of human travel & goods

distribution– Travel time is productive/social/play time

Page 18: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

Winners & losers• Industries at risk or facing reinvention: car

manufacturing, insurance, retail, distribution, transit• Jobs at risk: commercial drivers (taxi, bus, delivery,

truck), trauma healthcare• Privacy• Who will lead & reap the benefits?

– Digital conglomerates? – Auto industry? – Cities & communities?

• European & US cities, OECD, EU, various researchers tackling the policy, jobs & competitiveness issues

• Niche application positioning of Canada’s ICT sector leaves us ill prepared for this next wave

Page 19: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

• Quality technical grads, but shortages• Insufficient business skills & seasoning• ICT manufacturing down, telecom &

wholesaling flat• Up: software, systems design/data processing• Context: Silicon Valley platform conglomerates• New platforms aim to monopolize the physical• Policy agenda for digital platforms?

Page 20: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers

EU Commissioner for Digital Economy & Society Günther Oettinger @GOettingerEU

Page 21: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers
Page 22: Labour supply/demand dynamics of Canada’s ICT sector and … · 2015-05-01 · Nordicity 2012-13 for Industry Canada • Focus: R&D intensive part of ICT sector – Mainly (a) manufacturers